Credit cards are now becoming a big part of the financial lives of millions of people.They're used to make the payments you might make on a credit card.They're also a convenient way to get your mortgage, especially if you've got a family member with the same income level as you.But they can also be risky if they're used incorrectly, as was the case in this recent story.The story starts in 2007 whe...
N.J. regulators have rejected a proposal by banks to change their mortgage lending standards and provide better rates to borrowers in a bid to keep rates low.
The state’s top financial regulator said the new rules, which would have capped mortgage borrowing at $1 million and allowed borrowers to refinance at lower rates, would create more confusion for borrowers.
In a letter dated Thursday, the New Jersey Office of the Attorney General said the changes would make it more difficult for borrowers to understand the refinancing process.
In the letter, the state’s chief financial regulator also said banks would have to provide borrowers with better information about their mortgage payment.
“This could lead to higher loan originations and increase mortgage defaults,” the letter said.
The proposal, which was endorsed by Gov.
Chris Christie in January, would have allowed borrowers with credit scores below 620 points to refit with a new mortgage.
The state is expected to issue new regulations on how banks can offer refinances to borrowers with lower credit scores.
The new rules would have required banks to offer refinancing at rates between 3 percent and 10 percent higher than the average rate.
The governor’s office has previously said it would not consider changes to the refinancings rules to help the state.
The governor’s letter also says the new regulations would not affect the federal government’s ability to enforce the mortgage laws.